Agenda Package 4-22-13 Spec. Called Meeting

Home Browse Search

LEE - COUNTY X TrA -�V Committed Today for a Better Tomorrow LEE COUNTY BOARD OF COMMISSIONERS ITEM ABSTRACT ITEM NO. I. A. _ Information Meeting Date: April 22, 2013 XX Action Item Consent Agenda SUBJECT Sanford Lee County Airport Authority Purchase of the Southeastern Aviation (Patriot) Hanger for lease to the North Carolina Forestry Service DEPARTMENT Administration CONTACT PERSON John Crumpton REQUEST The Sanford Lee County Airport Authority is requesting that the Lee County Board of Commissioners approve a transfer of $270,000 from the Airport Reserve Fund to the Airport Authority so that the Authority can complete the foreclosure purchase of the Southeastern Aviation (Patriot) Hanger at the Sanford Lee County Airport. SUMMARY The Airport Authority was first contacted by the NC Forestry Service in April 2012 about consolidating their flight operations for the Central Region and Maintenance Operations for the entire State fleet at the Raleigh Executive Jet Port (Sanford Lee County). By Statute passed in the short session last year, the General Assembly required the Service to consolidate flight operations into 3 regions, West, Central and East. After an RFP process that the Authority participated in June of last year, the Forestry service chose Sanford, Lee County as their Central Region location and would also house maintenance operations for the entire state at the facility. The Forestry service then needed to get approval from the Council of State for the Lease. Due to the change in administration this process took 6 months to complete. The Council of State approved the lease in February of this year. After meeting with the Forestry Service two options were developed to meet their needs; 1) to Build a completely new facility or 2) modify an existing hanger to meet their specifications. The Authority first looked at building new until they were approached by Southeastern Aviation (Patriot) to purchase their hanger. After negotiating a purchase price on the hanger for $450,000, the option ran out when the Council of State delayed action on the lease. After this occurred the Authority was informed about the pending foreclosure by First Bank and decided to take a chance of purchasing the hanger at foreclosure at a reduced price. The Authority was able to bid $2 at the sale and then survived the 10 day upset period. Now First Bank wants to close by the end of this month and the Authority is in the position of coming to the Commissioner to request the funds from the Airport Reserve Fund. BUDGET IMPACT $270,808.86 is the total purchase price of the hanger. $270,000 to come from the Airport Reserve Fund that the County administers.